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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?


To: Michael T Currie who wrote (2025)5/12/1998 9:31:00 AM
From: MeDroogies  Respond to of 6931
 
Disagree, that's your right. But it really matters little. I tend to go for P/Cash Flow. It is consistent, easily comparable, and tells you more about the company than any other valuation method. Since cash flow is usually (but not always) positive, it allows you to compare large companies to small ones within given industries without altering your valuation method (how would you compare AAPL to MSFT when AAPL was losing money? P/Sales? yecchhh!)
Cash Flow is the primary operating number in any business. It is what keeps companies afloat, and eventually it is what makes them profitable or causes them to go bust.
Part of the reason for Wall Street's high market cap is due to the emphasis many analysts are now putting on cash flow figures.
But, for investing purposes, consistency is VERY important. Whenever I hear investors who alter their criteria for buying/selling because of this reason or that, I stop listening. It's usually a rationalization meant to assuage their own questions about the investment.
That isn't to say that there isn't more than one way to invest...just that the most successful investors I know tend to find something that works and stick to it.